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Difficulty:
95%
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Question Stats:
40% (02:33) correct
60%
(02:30)
wrong
based on 128
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The recent increase in the value of the dollar is worrying US exporters, who see themselves as being undercut by foreign competition. The rise was triggered by an upward interest rate modification declared by the Federal Reserve, but the rise would not have occurred had there not been simultaneously-announced cutbacks in this year’s defense-spending budget.
Which of the following would most qualify to be evaluated to test the conclusion?
(A) Whether past increases in defense spending were frequently followed by simultaneous rises in interest and decreased values of the dollar.
(B) Whether the recent decline in export sales is more because US goods are not able to manage a very price-sensitive foreign marketplace.
(C) Whether defense cutbacks are often the result of economic declines coupled with budget deficits.
(D) Whether a rise in the percentage of export trade captured by foreign competitors often results in increased defense spending to emphasize US military superiority.
(E) Whether an overvalued dollar is sometimes accompanied by a rise in US exports of IT goods.
Which of the following would most qualify to be evaluated to test the conclusion?
(A) Whether past increases in defense spending were frequently followed by simultaneous rises in interest and decreased values of the dollar.
(B) Whether the recent decline in export sales is more because US goods are not able to manage a very price-sensitive foreign marketplace.
(C) Whether defense cutbacks are often the result of economic declines coupled with budget deficits.
(D) Whether a rise in the percentage of export trade captured by foreign competitors often results in increased defense spending to emphasize US military superiority.
(E) Whether an overvalued dollar is sometimes accompanied by a rise in US exports of IT goods.
12 Jun 2025, 08:56
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Here's my thought process. Experts feel free to straighten this out if my reasoning is not tight enough.
It seems like the occurrences of the 3 instances are correlated with each other.
We also know that the dollar value increment was triggered by the declaration of an upward interest rate modification.
The question that pops out after reading the passage is - Would there be a rise in the dollar value if there were no cutbacks on the defense spending budget? - My guess is it could be. But how would we know?
Let's check the answer choices.
Option A - indicates a history of this correlation - (Sounds like knowing this would help us evaluate this concl)
Option B - does touch upon the topic of export and price-sensitivity, but it doesn't move the needle on the concl
Option C - we are not told about any eco decline in the passage
Option D - talks about causation in the opposite direction
Option E - Don't know about export of IT goods specifically from the passage
It seems like the occurrences of the 3 instances are correlated with each other.
We also know that the dollar value increment was triggered by the declaration of an upward interest rate modification.
The question that pops out after reading the passage is - Would there be a rise in the dollar value if there were no cutbacks on the defense spending budget? - My guess is it could be. But how would we know?
Let's check the answer choices.
Option A - indicates a history of this correlation - (Sounds like knowing this would help us evaluate this concl)
Option B - does touch upon the topic of export and price-sensitivity, but it doesn't move the needle on the concl
Option C - we are not told about any eco decline in the passage
Option D - talks about causation in the opposite direction
Option E - Don't know about export of IT goods specifically from the passage
Matty101
